When the calendar flips into the last quarter of the year many taxpayers find themselves scrambling to close out the tax year with a clean slate and a favorable balance sheet.
The last three months—October, November, and December—present a prime chance to claim deductions that lower your taxable income in 2024.
Whether you run a small business, work as a freelancer, or manage a household with a mortgage and increasing expenses the right moves can shave thousands off the amount you owe.
Below are practical, time‑sensitive strategies to maximize deductions before the year ends.
1. Compile a “Last‑Moment” Expense Checklist Start by pulling together every receipt, invoice, and expense record from the past year. Identify categories that are often overlooked: Office supplies and equipment Home‑office expenses (if you qualify) Health‑related costs (medical, dental, and vision) Vehicle expenses (business mileage or actual costs) Professional development (courses, conferences, certifications) Charitable contributions The key is to capture everything before the December 31st deadline even modest expenses can stack up alongside other deductions.
2. Speed Up Capital Expenditures If your business has a capital budget, you might buy equipment, software, or machinery before year‑end Section 179 lets you deduct the entire cost—up to the limit—of qualifying property in the year it’s placed in service for many small businesses, this can provide a sizable deduction that would otherwise be spread over several years under depreciation.
If your planned purchase exceeds the Section 179 limit or you’re a larger entity, you can still benefit from bonus depreciation, which allows you to take an additional 100% first‑year deduction on qualifying property Just make sure you file the appropriate forms (Form 4562) and that the assets meet the IRS criteria.
3. Fund Retirement Accounts Individual retirement accounts (IRAs) and employer‑sponsored plans such as 401(k)s, SEP‑IRAs, and SIMPLE IRAs all offer tax‑deferred growth and 中小企業経営強化税制 商品 deduction potential. Contribute before the April 15th deadline to cut your taxable income for 2024. Traditional IRA: Contributions are deductible up to $7,000 (or $6,500 if you’re under 50) in 2024, depending on your income and participation in an employer plan 401(k) or similar employer plan: Contributions are limited to $23,000 in 2024, with an additional $7,500 catch‑up contribution allowed for those 50 and older SEP‑IRA or SIMPLE IRA: These are ideal for self‑employed folks and small business owners aiming to contribute a larger share of income
Note that contributions by December 31st are credited to the 2024 tax year, so do not postpone until the final moment.
4. Use the “Home‑Office” Deduction Wisely If you qualify for the home‑office deduction—i.e., you use a portion of your home exclusively and regularly for business—you can take either the simplified method (square footage) or the regular method (actual costs). In the last quarter, you may have already taken the simplified deduction, but if you’re still within the first year of using the space, you can still switch to the regular method for larger savings.
Key points: Deduct utilities, rent or mortgage interest, property taxes, insurance, and part of your internet bill Maintain detailed logs of business versus personal use to support your claim
5. Execute Tax‑Loss Harvesting If you hold investments that have declined in value, the final quarter is the perfect time to consider a tax‑loss harvesting strategy. By selling a losing investment, you can offset capital gains realized elsewhere in your portfolio, reducing your overall tax liability. Be mindful of the “wash‑sale” rule: if you buy the same or a substantially identical security within 30 days before or after the sale, the loss will be disallowed.
6. Charitable Contributions—Cash & Non‑Cash Charity can be one of the most powerful deduction tools. Contributions of cash, stocks, or other appreciated assets are often deductible at fair market value, which can reduce the cost basis for the donor. If you donate appreciated securities, you can avoid capital gains tax on the appreciation while still receiving a deduction at full market value Non‑cash gifts like clothing, furniture, or vehicles must be appraised by a qualified professional if they surpass $500 in value Retain a written acknowledgment from the charity and preserve the receipt for every contribution
7. Capitalize on Holiday Deductions The holiday season can create legitimate business expenses that many overlook: Gifts for employees or clients (up to $25 per person each year) Marketing and promotional materials distributed during the holidays Travel and lodging for business trips taken over Christmas or New Year’s
Ensure you differentiate personal from business gifts and keep receipts that unmistakably reveal the business purpose.
8. Examine Medical & Dental Costs If you’re close to reaching the threshold for medical expense deductions—currently 7.5% of adjusted gross income—then the last quarter may be the sweet spot to front‑load expenses. Pay for a deductible health plan, dental work, or even elective procedures before year‑end. Save all receipts, as you’ll need them to verify the deduction.
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9. Pay Taxes Ahead of Schedule If you anticipate owing taxes and want to avoid interest or penalties, consider making a prepayment of estimated tax. The IRS allows you to make a payment by December 31st that will count for the current year. This can be especially useful if you have a large deduction that brings your tax liability below zero; you can use the overpayment to offset the next year’s tax.
10. Stay Updated on Tax Law Changes Tax law is dynamic, and last‑quarter changes can affect deductions. As an example, the Tax Cuts and Jobs Act (TCJA) might still phase out certain provisions by 2025 Stay informed about any extensions or modifications by checking IRS updates or consulting a tax professional.
11. Properly Organize and File Finally, no deduction is worth your time if you can’t document it. File the correct forms—Schedule C, Schedule E, Form 1040, etc.—and attach any necessary supporting documentation. Consider using tax software that flags potential deductions or consult a CPA to review your return before filing.
In conclusion, the last quarter presents a strategic window to reap the benefits of numerous deductions Accelerating capital expenditures, maximizing retirement contributions, harvesting tax losses, and leveraging charitable giving can lower your taxable income and keep more of your hard‑earned money Plan, act, and document—then sit back and enjoy the tax savings that come from a well‑executed strategy.
